DHS Adds Three Parties to the UFLPA Entity List - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On June 11, 2024, the U.S. Department of Homeland Security announced the addition of three companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. The UFLPA creates four categories of covered entities. All of the new additions fall within the category covering entities working with the government of the Xinjiang Uyghur Autonomous Region (XUAR) to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR.
By statute, goods, mined, produced, or manufactured wholly or in part in the XUAR or produced by an entity on one of the UFLPA lists are subject to a rebuttable presumption that they were made using forced labor and are inadmissible.
The three new additions to the entity list, effective June 12th, are:
• Dongguan Oasis Shoes Co., Ltd. (also known as Dongguan Oasis Shoe Industry Co. Ltd.; Dongguan Luzhou Shoes Co., Ltd.; Dongguan Lvzhou Shoes Co., Ltd.)
• Shandong Meijia Group Co., Ltd. (also known as Rizhao Meijia Group)
• Xinjiang Shenhuo Coal and Electricity Co., Ltd.
Since the UFLPA was signed into law, 68 entities have been added to the UFLPA Entity List involving various product sectors. Future additions to the list will be considered. A procedure also is available whereby parties may request their removal from the entity list.
Please do not hesitate to contact any of our attorneys for further information on the above or any other aspect of UFLPA compliance.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Narrow Woven Ribbons With Woven Selvedge From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Rescission of Review, in Part; 2022
• Forged Steel Fluid End Blocks From India: Final Results of Countervailing Duty Administrative Review; 2022
• Certain Aluminum Foil From the Republic of Türkiye: Final Results and Partial Rescission of the Countervailing Duty Administrative Review; 2021
• Welded Stainless Pressure Pipe From India: Final Results of Antidumping Duty Administrative Review; 2021-2022
• Certain Aluminum Foil From the Republic of Türkiye: Final Results of Antidumping Duty Administrative Review; 2021-2022
• 2,4-Dichlorophenoxyacetic Acid From the People's Republic of China and India: Postponement of Preliminary Determinations in the Countervailing Duty Investigations
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Certain Paper Shopping Bags From Cambodia: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part; Withdrawal
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Magnesia Carbon Bricks From the People's Republic of China: Rescission of Antidumping Duty Administrative Review; 2022-2023
• Chlorinated Isocyanurates From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2021
• Certain Steel Nails From the United Arab Emirates: Preliminary Results of Antidumping Duty Administrative Review, and Partial Rescission; 2022-2023
• Silicomanganese From India: Preliminary Results of Antidumping Duty Administrative Review and Intent To Rescind, in Part; 2022-2023
• Forged Steel Fittings From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2021-2022
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Vanillin From China; Institution of Antidumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Brass Rod From Brazil, India, Mexico, South Africa, and South Korea; Determinations
• Initiation of Antidumping and Countervailing Duty Administrative Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Initiation of Countervailing Duty Investigation
• Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2021-2022; Correction
• Antidumping Duty Order on Hydrofluorocarbon Blends From the People's Republic of China: Final Affirmative Determination of Circumvention With Respect to R-410A and R-407C From Malaysia
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Glass Wine Bottles From Chile, China, and Mexico; Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
• Truck and Bus Tires From Thailand; Scheduling of the Final Phase of an Antidumping Duty Investigation
• Investigations; Determinations, Modifications, and Rulings, etc.: Non-Refillable Steel Cylinders From India; Determinations
• Alkyl Phosphate Esters From China; Determinations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Fresh Garlic From the People's Republic of China: Affirmative Final Determination of Circumvention of the Antidumping Duty Order
• Certain Non-Refillable Steel Cylinders From India: Antidumping Duty and Countervailing Duty Orders
• Mattresses From Cambodia: Notice of Court Decision Not in Harmony With the Amended Final Determination of Antidumping Duty Investigation; Notice of Amended Final Determination; Notice of Amended Antidumping Duty Order
• Certain Aluminum Foil From Brazil: Final Results of Antidumping Duty Administrative Review; 2021-2022
• Brass Rod From the Republic of Korea: Amended Final Antidumping Duty Determination; Brass Rod From Brazil, India, Mexico, the Republic of Korea, and South Africa: Antidumping Duty Orders; Brass Rod From the Republic of Korea: Countervailing Duty Order
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Graphics Systems, Components Thereof, and Digital Televisions Containing the Same; Notice of Commission Determination To Institute Modification and Rescission Proceedings and To Grant a Joint Motion for Limited Service of Confidential Exhibits; Modification of Limited Exclusion Order and Rescission of Cease and Desist Orders; Termination of Modification and Rescission Proceedings
• Certain Surface Cleaning Devices and Components Thereof; Notice of Institution of Investigation
• Certain Pick-Up Truck Folding Bed Cover Systems and Components Thereof (III); Notice of a Commission Determination Not To Review an Initial Determination Granting Summary Determination of Violation of Section 337; Request for Written Submissions on Remedy, the Public Interest, and Bonding
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As Russia Completes Transition to a Full War Economy, Treasury Takes Sweeping Aim at Foundational Financial Infrastructure and Access to Third Country Support - U.S. Department of Treasury
Over 300 new sanctions issued across Treasury and State
Foreign financial institutions that support Russia’s war economy face greater risk of sanctions
WASHINGTON — As President Biden and Group of Seven (G7) Leaders prepare to meet this week in Italy, the U.S. Department of the Treasury is issuing sweeping new measures guided by G7 commitments to intensify the pressure on Russia for its continued cruel and unprovoked war against Ukraine. Today’s actions ratchet up the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy; restrict the ability of Russian military-industrial base to take advantage of certain U.S. software and information technology (IT) services; and, together with the Department of State, target more than 300 individuals and entities both in Russia and outside its borders—including in Asia, the Middle East, Europe, Africa, Central Asia, and the Caribbean—whose products and services enable Russia to sustain its war effort and evade sanctions.
“Russia’s war economy is deeply isolated from the international financial system, leaving the Kremlin’s military desperate for access to the outside world,” said Secretary of the Treasury Janet L. Yellen. “Today’s actions strike at their remaining avenues for international materials and equipment, including their reliance on critical supplies from third countries. We are increasing the risk for financial institutions dealing with Russia’s war economy and eliminating paths for evasion, and diminishing Russia’s ability to benefit from access to foreign technology, equipment, software, and IT services. Every day, Russia continues to mortgage its future to sustain its unjust war of choice against Ukraine.”
Treasury is targeting the architecture of Russia’s financial system, which has been reoriented to facilitate investment into its defense industry and acquisition of goods needed to further its aggression against Ukraine. Treasury is also targeting more than a dozen transnational networks laundering gold for a designated Russian gold producer, supporting Russia’s production of unmanned aerial vehicles (UAVs), and procuring sensitive and critical items such as materials for Russia’s chemical and biological weapons program, anti-UAV equipment, machine tools, industrial machinery, and microelectronics. Today’s action also takes further steps to limit Russia’s future revenue from liquefied natural gas.
The State Department is targeting over 100 entities and individuals engaged in the development of Russia’s future energy, metals, and mining production and export capacity; sanctions evasion and circumvention; and furthering Russia’s ability to wage its war against Ukraine.
NEW SECONDARY SANCTIONS RISK
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EAPA Case 7890: Various Importers (Notice of Initiation of Investigation and Interim Measures, May 31, 2024) - U.S. Customs & Border Protection
Notification of Initiation and Interim Measures in EAPA Case 7890 – Certain Oil Country Tubular Goods from China
WASHINGTON — On May 31, 2024, U.S. Customs and Border Protection (CBP) issued its notification of initiation and interim measures as to evasion by Amek Aluminum & Stainless, Inc.; Centric Pipe LLC; Copley International Group Co Ltd; Energy Pipe & Equipment Rentals LLC; Kana Energy Services Inc.; LE Commodities, LLC; Lixin Energy Group (HK) Co., Limited; Longfellow Energy, LP; Trek Metals Inc.; and TSPGA LLC (collectively, the Importers) in Enforce and Protect Act (EAPA) investigation 7890, examining the evasion of antidumping duty (AD) and countervailing duty (CVD) orders A-570-943 and C-570-944 on certain oil country tubular goods from the People’s Republic of China (China). CBP found there was a reasonable suspicion that the Importers had been entering covered merchandise from China that was transshipped through Thailand.
In light of CBP’s determination that the Importers entered covered merchandise into the customs territory of the United States through evasion, and pursuant to its authorities under EAPA, CBP will:
• Require “live” entry for all imports of QSP, meaning the Importers must submit proper import documentation and duties prior to the release of their merchandise;
• Suspend or extend entries of the Importers without final computation or determination of duties (liquidation), as appropriate; and
• Review the Importers’ continuous bonds and application of single transaction bonds for their entries, as appropriate.
These actions do not preclude CBP from taking additional enforcement measures as it determines appropriate under its EAPA or other legal authorities, which include pursuing civil penalties or investigations into criminal violations.
For additional information on CBP and EAPA, please visit the EAPA Homepage. If you suspect an importer of duty evasion, CBP encourages you to submit an allegation through our online portal.
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Treasury Releases New Analysis Showing Historically Strong U.S. Business Investment in the Post-COVID Expansion - U.S. Department of Treasury
WASHINGTON — Today, the U.S. Department of the Treasury’s Office Economic Policy released an analysis that shows American businesses are doing well not simply because their earnings are high, but because they are investing those earnings productively. The Biden Administration has made creating favorable conditions for business investment a critical competent of the post-COVID economic agenda. The CHIPS & Science Act and Inflation Reduction Act explicitly encourage private investment, while other Administration efforts increase competition and reduce barriers to entry for new firms. Business investment strengthens our economy’s long-run productivity while creating space for higher-quality jobs.
This analysis comes before Secretary Yellen’s remarks to the Economic Club of New York on Thursday, June 14, where she’ll discuss President Biden’s Investing in America Agenda and the ways the Administration is partnering with the private sector to spur growth across the country.
Highlights from the analysis:
• American business investment is outperforming expectations in the post-pandemic expansion; businesses have invested $430 billion more since 2019 than if investment had followed historical patterns. Despite high interest rates that increase firms’ borrowing costs, real American business investment has outperformed three key benchmarks: typical behavior in economic expansions, post-COVID consensus forecasts, and the conventional accelerator models that economists use to forecast investment.
• Factory building (construction for manufacturing) has contributed almost one third of business investment growth since the pandemic. Factory building did not contribute to business investment growth on average from 1973 to 2021, but since then it has contributed a third of overall business investment growth. Intellectual property investment has also grown, while conventional equipment investment has slowed. With factory building concentrated in the computer, electrical, and electronic sector, the trend appears to be related to the CHIPS Act and the Inflation Reduction Act.
• The outlook for future business investment growth is encouraging: firms are observing persistently high returns to their capital, and founders are starting new businesses at historic rates. Today’s persistently high returns to capital give businesses confidence that their investments will pay off in the future and negate the idea that public investments are crowding out private capital. These high returns are persisting even as the Administration works to rein in non-competitive monopolistic practices that may have boosted these returns in the past. Business founders are showing confidence in the investment outlook, as applications for new businesses surge above pre-pandemic rates.
Read the full analysis here.
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Justice Department and FDA Announce Federal Multi-Agency Task Force to Curb the Distribution and Sale of Illegal E-Cigarettes - FDA
The U.S. Department of Justice (DOJ) and the U.S. Food and Drug Administration (FDA) today announced the creation of a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes.
Along with the FDA and the Justice Department, the task force will bring together multiple law enforcement partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the U.S. Marshals Service (USMS); the U.S. Postal Inspection Service (USPIS); and the Federal Trade Commission (FTC), to coordinate and streamline efforts to bring all available criminal and civil tools to bear against the illegal distribution and sale of e-cigarettes responsible for nicotine addiction among American youth. Additional agencies may join the task force in the coming weeks and months.
“Unauthorized e-cigarettes and vaping products continue to jeopardize the health of Americans – particularly children and adolescents – across the country,” said Acting Associate Attorney General Benjamin C. Mizer. “This interagency Task Force is dedicated to protecting Americans by combatting the unlawful sale and distribution of these products. And the establishment of this Task Force makes clear that vigorous enforcement of the tobacco laws is a government-wide priority.”
“The Justice Department is committed to enforcing the laws that prevent the sale and distribution of unlawful e-cigarettes,” said Principal Deputy Assistant Attorney General Brian Boynton, head of DOJ’s Civil Division. “We will work closely with our Task Force partners to address this crisis with all of the enforcement tools available to us.”
“Curbing the widespread availability of illegal ENDS products is a top priority of the Justice Department’s consumer protection efforts,” said Deputy Assistant Attorney General Arun G. Rao of the Civil Division’s Consumer Protection Branch. “Together with our law enforcement partners, we look forward to advancing aggressive and innovative solutions to the unique and constantly evolving problem of illegal vaping products.”
“Enforcement against illegal e-cigarettes is a multi-pronged issue that necessitates a multi-pronged response,” said Dr. Brian King, director of the FDA’s Center for Tobacco Products. “This ‘All Government’ approach – including the creation of this new Task Force - will bring the collective resources and experience of the federal government to bear on this pressing public health issue.”
The 2023 National Youth Tobacco Survey found that about 2.1 million youths reported currently using e-cigarettes, which reflects a considerable decline from 5.3 million youth in 2019. However, 10 percent of high school students and almost five percent of middle school students reported currently using e-cigarettes, and more than one in four of those e-cigarette users reported daily e-cigarette use. Manufacturers, distributors and retailers market a wide range of products that appeal directly to school-age users, such as candy and fruit flavors, some of which come in devices designed to be easily concealed.
Youth use of tobacco products in any form – including e-cigarettes – is unsafe. According to the CDC, nicotine poses unique dangers to young people. In addition to being highly addictive, nicotine can harm the developing adolescent brain, which continues to develop until about age 25. Young people who use nicotine may also be at risk for addiction to other drugs.
To date, the FDA has authorized the sale of 23 specific tobacco-flavored e-cigarette products and devices. These are the only e-cigarette products that currently may be lawfully marketed and sold in the United States. To date, the FDA has issued more than 1,100 warning letters to manufacturers, importers, distributors and retailers for illegally selling and/or distributing unauthorized new tobacco products, including e-cigarettes, and has filed civil money penalty complaints against more than 55 manufacturers and 140 retailers for the manufacture and/or sale of unauthorized tobacco products. In addition, the FDA and the Justice Department have obtained injunctions against six manufacturers to stop them from manufacturing and selling unauthorized e-cigarette products.
The federal task force will focus on several topics, including investigating and prosecuting new criminal, civil, seizure and forfeiture actions under the PACT Act; the Federal Food, Drug, and Cosmetic Act (FDCA), as amended by the Family Smoking Prevention and Tobacco Control Act (TCA); and other authorities. Violations of these statutes can result in felony convictions and significant criminal fines and civil monetary penalties. They can also result in seizures of unauthorized products, which can help to make illegal e-cigarettes less accessible, including to young people. Through their participation in the task force, USMS will help the FDA and the Department effectuate seizures of unauthorized e-cigarettes within the United States.
“The U.S. Marshals Service Asset Forfeiture Division stands ready to work with our Task Force partners in the seizure of unauthorized e-cigarettes from domestic distributors seeking to sell them unlawfully,” said Ronald L. Davis, director of the U.S. Marshals Service.
The Justice Department is also collaborating with ATF and USPIS on potential criminal and civil enforcement actions under the Prevent All Cigarette Trafficking Act of 2009 (PACT Act). The PACT Act requires online sellers of ENDS products to register with ATF and to verify the age of purchasers both at the point of sale and the point of delivery, as well as to comply with tax collection provisions and state and local laws. The task force announced today will support these actions and coordinate enforcement strategies the FDA and the Justice Department are working on with multiple agency partners.
“The PACT Act is an important tool for preventing the unlawful sale of e-cigarettes to minors online. ATF looks forward to working with other components of the Department of Justice and USPIS to enforce the law,” said ATF Director Steven M. Dettelbach.
“The U.S. Postal Inspection Service is committed to working with the Task Force to investigate violations of the PACT Act and other statutes that govern the distribution of e-cigarettes through the mails,” said Chief Postal Inspector Gary R. Barksdale.
Finally, the Federal Trade Commission (FTC), which releases reports about cigarette, smokeless tobacco and e-cigarette marketing, and enforces various statutory and regulatory prohibitions on false and misleading advertising, will support the activities of the task force, including by sharing its knowledge about the marketplace for vaping products.
“We look forward to sharing our experience with this rapidly changing, multi-billion dollar market through this important Task Force,” said Samuel A.A. Levine, director of the FTC’s Bureau of Consumer Protection.
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Changes for Dogs Entering the U.S. to Begin Soon - U.S. Customs & Border Protection
New CDC microchip, documentary requirements take effect August 1
SAULT STE. MARIE, Mich. – U.S. Customs and Border Protection’s (CBP) Office of Field Operations would like to inform travelers the U.S. Centers for Disease Control and Prevention (CDC) requirements for dogs entering the U.S. will change August 1.
Dogs must:
• Appear healthy upon arrival;
• Be at least six months of age;
• Be microchipped; and
• Be accompanied by a CDC Dog Import Form online submission receipt.
Additionally, proof of rabies vaccination may be required based on where the dog has been in the last six months and whether the dog was vaccinated in the United States or elsewhere. For dogs arriving from countries with a high risk of dog rabies, they must be protected against rabies.
“Regulating dog importation helps protect the health and safety of people and their pets,” said Port Director Donovan Delude. “The rabies variant carried by dogs was eliminated in the U.S. in 2007 and we’re working diligently in concert with the Center for Disease Control to prevent its reintroduction.”
According to the CDC, dog rabies is not controlled in over 100 countries, which is why there is an inherent risk in imported dogs.
Travelers are advised to learn more about bringing a dog into the United States and to obtain all necessary documentation prior to departure. Visit CBP.gov/travel for additional information on animal imports and more.